Local Government Environmental Assistance Network

PROPOSED 2022 CLEAN WATER ACT FINANCIAL CAPABILITY ASSESSMENT GUIDANCE

EPA's new proposed guidance outlines strategies for communities to support affordable utility rates while planning future CWA-required investments in water infrastructure. This guidance will describe the financial information and formulas EPA intends to use to assess communities' financial resources to meet CWA requirements and create timelines to implement control measures.

The finalized 2022 FCA will replace the 1997 Guidance for Financial Capability Assessment and Schedule Development.

For local governments, sufficient financing is critical to support infrastructure and programs that ensure environmental compliance and protection. The resources below provide information on available grants, loans, programs, publications and organizations that can assist local governments.

Environmental Finance Centers (EFC). The Centers serve each EPA region, providing technical assistance, training, publications and other programs relating to drinking water, stormwater and green infrastructure, clean energy and waste management. Availability of programs and services may vary between regional centers.

EPA Financing for Environmental Compliance. Eight-step planning process communities can use in determining their capital asset, technical and financial needs and in finding available funding resources to meet their compliance goals.

EPA Grants Center. Compendium of up-to-date federal environmental grant opportunities.

EPA Environmental Education (EE) Grants. Grants available to support environmental education projects that promote environmental awareness and stewardship and help provide people with the skills to take responsible actions to protect the planet.

EPA Finances and Beyond. PowerPoint Presentation introduction to the different financial programs and grants available to municipal governments. Lists useful financial tools developed by EPA and nonprofits and introduces EPA financing and funding opportunities, including the Clean Water State Revolving Fund (CWSRF) and the Water Infrastructure Finance and Innovation Act (WIFIA).

Bipartisan Infrastructure Rural Playbook. Document explaining key aspects of the Bipartisan Infrastructure Law and upcoming funding available to rural communities. Includes links to relevant government webpages and resources for those seeking to apply for funding.

Understanding the Inflation Reduction Act. Introduces several ways that local energy and climate programs can benefit from the IRA, including drought relief and funding for "resilience hubs."

Environmental Information Exchange Network. Internet-based system used by state, tribal and territorial partners to securely share environmental and health information with one another and EPA.

National Clean Diesel Campaign. Funding sources for building diesel engine emission reduction programs to improve air quality and protect public health.

EPA Federal Funding and Technical Assistance for Climate Adaptation. Frequently updated list of federal and state funding opportunities, technical assistance programs and financing guidance documents for localities pursuing climate adaptation and resilience projects and infrastructure updates.

Hazard Mitigation Grant Program (HMGP). Compilation of FEMA grants available to communities seeking to create hazard mitigation plans or increase their local resilience to future natural disasters, including climate change impacts like floods, hurricanes and other severe weather.

Flood Mitigation Assistance Program (FMA). Competitive grants for localities seeking to reduce risk of flood damage to buildings insured by the National Flood Insurance Program (NFIP).

Climate Pollution Reduction Grants Program. Provides application resources, program guidance, tools and technical resources, and more on these grants available to states, local governments, Tribes, and territories for creating and implementing plans to curb greenhouse gas emissions and air pollution.

ICLEI Climate Finance Decision Making Tree. Guides local government officials through a series of questions to match them with the most useful financing tool for their needs. Provides information on all recommended financing tools, including benefits, disadvantages and case study examples.

Department of Homeland Security State and Local Cybersecurity Grant Program. $1 billion has been allocated to mitigating cybersecurity risks and threats to key infrastructure including governmental information systems and water infrastructure. Local and tribal governments are eligible to apply when applications open in the third quarter of 2022.

EPA Drinking Water State Revolving Fund. EPA awards grants to states to establish revolving loan funds to assist public water systems with infrastructure improvements. The program also allows states to reserve a portion of their grant to fund activities needed for source water protection and enhanced water systems management.

American Rescue Plan. Communities can use American Rescue Plan Coronavirus State and Local Fiscal Recovery Funds to improve access to clean drinking water and support wastewater and stormwater infrastructure.

Bipartisan Infrastructure Bill. This act provides $11.7 billion to the Drinking Water State Revolving Fund (SRF); $15 billion to the Drinking Water SRF for Lead Service Line Replacement; $4 billion to the Drinking Water SRF for Emerging Contaminants; and $5 billion to Water Infrastructure Improvements for the Nation (WIIN) Grants to address emerging contaminants.

Water Technical Assistance funding. EPA provides states, Tribes and territories technical assistance (TA) to adequately identify, plan for and fund water and wastewater infrastructure improvements. EPA has expanded previous TA programs to allow communities access to BIL SRF funding.

Water Finance Clearinghouse. EPA offers two searchable databases, one on available funding sources, and one containing reports, links, webinars and other materials on financing mechanisms and approaches.

Water Finance Exchange. Partnership between federal and state stakeholders, communities, philanthropy and the financial sector to address the shortage of funding for water infrastructure projects, focusing on economically distressed and minority communities. Provides access to pre-development funding and resources as well as subject-matter experts to support communities in finding funding and building scalable solutions.

EPA Funding Integration Tool for Source Water (FITS). Interactive tool that identifies, and explains how users can integrate, available federal funding sources to finance projects that protect sources of drinking water.

State Energy Program. Funding available to states to design and carry out their own energy efficiency and renewable energy programs.

DOE Weatherization Assistance Program. Information on grant money available to states, which states can, in turn, award to local agencies to perform weatherization services.

BIL Funding available for Clean School Buses. BIL provides $5 billion over 5 years for clean school buses, including electric and alternative fuel buses. Each year, $500 million will be provided exclusively for EV buses and $500 million for EV and other cleaner alternative fuel buses.

Clean Energy Financing Toolkit for Decisionmakers. EPA interactive resource designed for local and state government officials to identify and learn more about clean energy financing programs, such as energy equipment leases and customer power purchase agreements.

EPA Office of EJ. Information about environmental justice grants and cooperative agreements, programs and other resources.

EPA EJ Small Grants Program. Funds community-driven projects focused on addressing or improving understanding of exposure to environmental hazards and public health. Grant awards up to $50,000.

EJ Funding Map. Interactive map showing locations of EPA-funded environmental justice projects.

EJ Grants, Funding and Technical Assistance. Compendium of EPA grant programs targeted at EJ communities. Includes funding for projects seeking to increase public health, remove existing sources of harmful pollution and increase public participation in local decision-making.

WIFIA Fund Facts Dashboard. The Water Infrastructure Finance and Innovation Act (WIFIA) provides long-term, low-cost supplemental loans for regionally and nationally significant projects, accelerating investment in our nation’s water infrastructure. The Fund Facts Dashboard graphically represents the portfolio of closed and pending loans and provides ways to filter the data by a range of variables.

Environmental Justice Government-to-Government (EJG2G) Program. Local governments can apply to partner with a community-based nonprofit organization to support activities that benefit the public health or environment in environmental justice communities. Apply April 14, 2023.

Guide to Finding Federal Assistance and Resources for EJ Efforts. Federal Interagency Working Group on Environmental Justice's FAQ style factsheet includes details on navigating the beta.SAM.gov grant application website and links to useful EJ webinars, listservs and guidance documents.

EPA's Local Governments Reimbursement (LGR) Program. The LGR program may reimburse local governments and federally recognized Tribes up to $25,000 for expenses related to a release and associated emergency response measures when a local government lacks available funds. Call the toll-free LGR Helpline at 1-800-431-9209 with questions. The LGR does not cover petroleum spills, but local governments may determine their eligibility for reimbursement at the U.S. Coast Guard's National Pollution Funds Center.

Homeland Security Grant Program (HSGP). Suite of risk-based grants geared for assisting states, localities, Tribes and territories with mitigation, prevention, response, and recovery activities relating to acts of terrorism and other threats.

FEMA Preparedness Grants. Supports capacity building to prepare for, protect against, respond to, recover from and mitigate terrorism and other high-consequence disasters and emergencies.

EPA Green Building Funding Opportunities. Frequently updated list of funding sources for green building aimed at homeowners, industry, government organizations and nonprofits.

Department of Housing and Development Community Development Block Grant Program. Awards money to local governments to develop and preserve livable affordable housing. Program funding may be used for improving environmental health and resident safety. Offers helpful guides, online toolkits and webinars to communities seeking to institute community development. Grants may also be awarded to local governments through their state program.

Indian Health Service (IHS) Sanitation Facilities Construction Program. Provides funding to assist Tribal communities build infrastructure for safe drinking water and water and waste disposal. Eligible activities include development and maintenance of an inventory of sanitation deficiencies, environmental engineering assistance with utility master planning and sanitary surveys, and technical consultation and training to improve operation and maintenance.

EPA Clean Water Indian Set-Aside Program. Bipartisan Infrastructure Law appropriations for State Revolving Funds includes a 2% set-aside for Tribes. More information on how to access these funds for clean water infrastructure creation, improvement and maintenance is available on this landing page.

Funding Opportunities and EPA Programs Related to the Food System. Up-to-date compendium of ongoing grant programs from EPA and other federal agencies providing funding for food systems projects, including food waste management, agricultural sustainability and community health-building initiatives.

Resource Recycling Grant Watch. Frequently updated repository of funding opportunities for recycling projects from private, nonprofit, state and federal government sponsors.

Clean Water State Revolving Fund (CWSRF). Funds supplied by EPA and state governments available for a wide range of water infrastructure projects, focused on increasing compliance with the Clean Water Act. EPA's CWSRF portal includes grant eligibility rules, guidance documents and financial reports from previous grantees.

EPA Federal Funding for Water/Wastewater Utilities in National Disasters (Fed FUNDS). Information about applicable federal disaster funding programs tailored to water and wastewater utilities. Addresses national-level, large-scale and even local disasters that result in service interruptions and significant damage to the critical water/wastewater infrastructure.

USDA Water & Waste Disposal Grants to Alleviate Health Risks on Tribal Lands and Colonias. Provides grants for developing basic drinking water and waste disposal systems to low-income communities facing health risks due to lack of access to safe drinking water and waste disposal facilities. Available to federally recognized tribal lands, areas recognized as Colonias and rural areas and towns with populations of 10,000 people or less.

Rural, Small and Tribal Wastewater Technical Assistance. Information on how rural, small and Tribal communities can engage RST TA to secure public funding for infrastructure improvements. RST TA provides specialized technical, managerial and financial support to ensure communities efficiently run wastewater treatment systems while meeting environmental and public health compliance standards.

Bipartisan Infrastructure Law Guidebook. Roadmap to the funding available under the new law, providing program-by-program information. Includes a searchable, sortable data file of funding resources.

Bipartisan Infrastructure Law Landing Page. Center for information and grant applications related to funding for water infrastructure, Superfund Site remediation, pollution prevention and more.

CWSRF Best Practices Guide for Financing Nonpoint Source Solutions. Provides detailed guidance for addressing pollution using Clean Water Act programs, understanding CWSRF eligibility requirements, developing partnerships with nonpoint source programs and outside stakeholders, financing these projects and testing and refining project approaches.

Asset Management Plans and CWSRF. Fact sheet demonstrating ways CWSRF can aid wastewater utilities in asset management planning and capital expenditures. Includes two case studies, illustrating how local systems improved with the introduction of state incentives in the first case study, and requirements for borrowers to create asset management plans in the second case study.

Local Government Stormwater Financing Manual. EFC publication on stormwater program reform, emphasizing the importance of looking beyond public funding sources. Provides detailed information on risk management for the advocated financing approach, focus group findings from local officials and technical guidance on setting utility rates.

EPA Integrated Planning Technical Assistance. EPA and EFC provide stormwater and wastewater utilities with direct guidance on Element 4 (Development, Evaluation and Selection of Preferred Alternatives) of the Integrated Municipal Stormwater and Wastewater Planning Framework.

Addressing the Affordability of Water and Wastewater Services in the U.S.. National Association of Clean Water Agencies (NACWA) report summarizing the key takeaways of 20 case studies of utility affordability programs and rate structures. Provides technical guidance to local governments in designing programs to increase affordable access to water services for low-income communities.

Indian Health Services -- Division of Sanitation Facilities Construction. Provides technical and financial assistance to American Indian Tribes and Alaska Native villages for cooperative development and construction of safe water, wastewater and solid waste systems and related support facilities.

WIFIA Fund Facts Dashboard. Interactive tool providing graphics and information regarding the WIFIA program's portfolio of closed and pending loans. Users can click different elements of the graphic to filter data by loan size, project type, geographic location and closing timeline.

EPA Funding Resources for Watershed Protection and Restoration. List of EPA grant programs that provide funding to watershed protection and restoration projects. Includes links to each program as well as relevant reports and publications on watershed financing.

USDA Watershed and Flood Prevention Operations Program. Funding available to local and tribal governments to protect and restore watersheds up to 250,000 acres. Program page includes additional eligibility information and guidance documents.

EPA Wetlands Program Development Grants (WPDG). Funding available to projects that promote the coordination and acceleration of research, investigations, experiments, training, demonstrations, surveys and studies relating to the causes, effects, extent, prevention, reduction and elimination of water pollution. Applications open each Spring.

EPA Five Star Wetland and Urban Waters Restoration Grants. Provides funding for technical support and information exchange for community-based wetland restoration projects. Grants range from $10,000-$40,000. EPA program page includes webinars and guidance documents on the grant writing process.

EPA Wetland Grants Database. Interactive database of previous WPDG projects, including grant data, case study narratives and model products.